Following is a summary of the impact of French Budget Law on
French VAT in 2016, and how it will affect companies with
operations in the country over the next 12 months.
Reduced distance selling VAT registration threshold
France amended its Tax Code- art. 258B and lowered the distance
selling VAT registration threshold from €100,000 to
€35,000 (net from tax), from 1 January 2016. Distance selling
of goods from another Member State of the European Union (EU), to
France, will be subject to French VAT once the total amount of the
sales to France exceed €35,000 excluding tax. Alternatively, a
supplier can chose to impose French VAT on invoices within the EU
from the first euro. With this new amendment to the French
threshold, France is, henceforth, in harmony with most EU
countries' distance selling thresholds.
